The Wholesale Forums

[chrisb1983]

Hi Guys,

Great forum btw so helpful

Ive been reading this forum and cant really find the answers i need for a couple of issue... I hope these are'nt simple questions just a little confused, I never knew their was so much involved in setting up business's and importing!!

Basically im setting up business got a supplier sorted, Funds in place and a market stall all sorted to open in the next 1-2 months.

I will be importing electronics such as Mp3/Mp4, Cameras, Camcorders etc into the UK from China.

When i import them i am of course charged what ever custom's duty involved & Vat at the standard rate 17.5% in most cases...

So my questions are;

1) When i pay the 17.5% Vat when bringing the goods into the UK do i then need to charge my customers a further 17.5% when the goods sell?, Or is this already classed as being paid?

2) In the past when i have purchased sample products from the factory involved its been shipped by DHL and DHL have invoiced me Including Vat on the shipping charge is this normal or should it only be on the goods?

Im sure these are just basic questions, But im just trying to get all the info i need before i set up as i do not want to end up in trouble if i do not do things right from day one!

Thx guys and any help at all will be so appreciated!

Chris.

[IF DISTRIBUTION]

Hi Chris, only just read your questions whilst looking for some answers myself on VAT issues within Europe.

When you import items and are charged VAT you cannot charge your customers an additional 17.5% as VAT unless you are registered in the UK for VAT. You should add the VAT you have had to pay onto the price of your items but DONT charge it seperately if not VAT Registered, in other words build in the amount you have been charged onto the price of the goods you are reselling.

With regard to being charged VAT on the cost of shipping, that is an HMRC requirement unfortunately. The best advice I can give you here is when you import, ask your supplier to show the cost of shipping seperately on the invoice and shipping paperwork otherwise customs use their own formula for working out the cost of shipping (usually works out more than you actually paid) and charge VAT on that amount.

Hope this helps and good luck with the market stall

[chrisb1983]

Thats great thanks for your help there